ABSTRACT

CARES Act: Selected Data on Coronavirus-Related Distribution and Loan Usage in 2020 [July 13, 2021]   [open pdf - 939KB]

From the Introduction: "Section 2202 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act; P.L. 116- 136) waived the 10% penalty for certain early withdrawals from retirement accounts--referred to as coronavirus-related distributions (CRDs)--and modified rules for loans from defined contribution (DC) plans in 2020 to try to assist those who may have faced financial difficulties due to the COVID-19 pandemic. 1 Retirement plans were permitted, but not required, to adopt CRDs and/or the loan provisions. These provisions--which were similar to those enacted following certain previous federally declared major disasters--expired in 2020 and, as of the date of this report, have not been extended by subsequent legislation. Following enactment of the CARES Act, some expressed concern about the use of the provisions and the extent to which usage might negatively affect retirement security. 2 Selected data on employers' adoption and individuals' utilization of the CARES Act's CRD and loan provisions in 2020 seems to indicate modest usage of these provisions. This data might be informative to Congress in understanding retirement account withdrawal and loan behavior during disasters."

Report Number:
CRS Report for Congress, R46837
Author:
Publisher:
Date:
2021-07-13
Series:
Copyright:
Public Domain
Retrieved From:
Congressional Research Service: https://crsreports.congress.gov/
Format:
pdf
Media Type:
application/pdf
URL:
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